It’s April 2021 and we need to conclude that COVID-19 has been affecting us for more than a year already. We hope you are still fit and healthy as an ox though. We also hope that COVID-19 has not brought only misery but also a few good experiences and positive insights.
As a mortgage broker, we’ve noticed that more and more people are dreaming about a new “home”. We have also noticed an increased uncertainty among expats regarding their financial options due to the possible impact of COVID-19. But don’t worry, there is some good news on this.
Good for you to know:
That said, there are important aspects to take into consideration before you start the search for a home and apply for a mortgage:
Due to COVID-19, mortgage providers are more reluctant when it comes to situations where people have a temporary contract. Especially when you have a contract with the intention to extend it for a limited time (again) rather than for an indefinite period. In this situation, mortgage providers might ask for a track record of approximately three years to determine your income. Therefore, make sure you know what kind of contract you have and check the possible impact on your income before you start looking for your dream house.
Mortgage providers like to know more about the possible impact of COVID-19 on the company you work for or on your business. They will also ask if you have a backup, like savings. These questions are part of a standard questionnaire (feel free to ask us for a copy).
A number of mortgage providers face difficulties with their workload. There is still a high demand for mortgages versus a sometimes decreased capacity due to illness and homeschooling. Therefore, you should know that it might take a little more time than usual to get final approval.
In general, all lights are still green when it comes to financing your home. However, the process can be a bit more intense compared to how it used to be before COVID-19. But no worries, there is a way to deal with this and that is plain and simple: by being prepared.